2. PUBLIC AND COMMERCIAL OWNERSHIP
An example of a public service is the BBC because it is owned by the general public. This is because
everyone has to pay a license fee which funds the business. All of the money goes into
producing the programmes and broadcasting the wide range of television stations that the BBC
air. All together the BBC have 30 channels, an example of these are:
• BBC 1
• BBC 2
• BBC 3
• BBC 4
• CCBC
• Cbeebies
In order to be able to broadcast the programmes aired must include at least three things, these are to
entertain, educate and inform the viewers. A public service channel runs off the money they
make from the license fee which every household has to pay, which is approximately a yearly
sum of £145.50.
Commercial Ownership:
Commercial ownership is when a privately held company or close corporation is a business
company owned by either non-governmental organisation or by a relatively small number of
share holders or company members which does not offer or trade it company stock shares to
the general public.
3. CONGLOMERATES
The definition of a conglomerate is when a corporation is made up of a number and
seemingly unrelated businesses. In a conglomerate, one company owns a
controlling stake in a number of smaller companies, which conducts business
separately. Conglomerates were popular during the 1960’s due to a combination of
low interest rates. An example of a large conglomerate is the Walt Disney
Company in terms of revenue.
Advantages:
• A conglomerate creates an internal capital market if the external one doesn’t
develop enough.
• A conglomerate can show earnings growth, by acquiring companies whose shares
are more discounted than on its own.
Disadvantages:
• Culture clashes can destroy value.
• Lack of focus and inability to manage unrelated business equally well.
4. VERTICAL AND HORIZONTAL INTEGRATION
Vertical and Horizontal integration both relate to strategies that are in
approach. Vertical integration is the process in which several steps in
the production and/or distribution of a product or service which is
controlled by a single company or entity, in order to increase that
company’s or entity’s power in the market place. An example of vertical
integration is Coca-Cola, where you see the brand on the drink meaning
they are the producers but not necessarily the makers of the bottles
that carry the drink. This task of creating bottles is outsourced to
someone who can do it better and at a cheaper cost.
Horizontal integration on the other hand is much more common and
simpler than vertical integration. Horizontal integration, also known as
lateral integration, simply means a strategy to increase market share by
taking over a similar company. This can be done in the same geography
and probably in other countries to increase reach. Examples of
horizontal integration are many and available in plenty – especially in
the case of technology industry, where mergers and acquisitions
happen in order to increase the reach of an entity.
5. FREE TO AIR AND SUBSCRIPTION BASED
TELEVISION PACKAGES
Free to Air:
Free to Air television packages is when any person is allowed to receive
signal with the appropriate equipment and enables them to view or
listen to the content without requiring a subscription or other on-going
costs or one-off fees. This is carried on terrestrial radio signals and
received with an antenna. Free to Air is often used for international
broadcasting, making it something of a video equivalent to shortwave
radio.
Subscription Based Television:
Pay television, subscription television, premium television or premium
channels refer to subscription based television services, usually
provided by both analogue and digital cable and satellite television.
6. PROGRAMME SALES, INTERNATIONAL SALES,
SPIN-OFFS AND FRANCHISING
Programme Sales:
This licence enables distributors, production companies and individual producers of UK-originating
television programmes to sell.
International Sales:
These are companies who believe that a certain programme which they own will not only be a hit in
one country but will also be popular in other countries. This meaning that the country will sell
the rights to other broadcasters – an example of this is “The Voice” which is a programme
which is not only taken part in Britain but also other countries, such as Australia.
Spin Offs:
A spin off is a television programme, radio programme, film or any narrative work and focus’ in more
detail on one aspect of the original work, for example a character, a topic or an event. An
example of a spin off is Friends, where they created a spin off called “Joey” which is based
around one of the characters originally from Friends itself. The main character is Joey Tribbiani,
a struggling actor and food lover who becomes famous from his role in “Days of Our Lives”.
The series picks up where Friends left off, with Joey at the beginning of the show making a
move from New York to Los Angeles to proceed with his acting career.
Franchising:
Franchising is one of the three business strategies a company may use in capturing market share.
Franchising is a business strategy for getting and keeping customers. It is a marketing system
for creating an image in the minds of current and future customers and how the company’s
product and services can help them.
7. ADVANCEMENTS IN TECHNOLOGY FROM
ANALOGUE TO DIGITAL AND EMERGING
TECHNOLOGY SUCH AS ON DEMAND SERVICES
The advancements of technology has improved throughout the years when
new programming has been created such as fast forward, rewind, pause
and replay. Also most television technology now has the advances of
being able to record programmes if needs be, also “catch up” which
gives viewers the opportunity to watch programmes which they may of
missed.
Sky has created “On Demand” which is a service where you can watch
programmes which are pre-recorded after they have been broadcasted
on live television. Sky also have rivals who have the same service, such
as Netflix, Virign, BT and Love Film. On demand is available to watch on
a variety of platforms such as laptop/computer, tablet, mobile phone
and game consoles.
8. OFCOM REGULATIONS
OFCOM was established as a body corporate by the Office of
Communications Act in 2002. These include the Communications Act,
the Wireless Telegraphic Act, the Broadcasting Acts, the Digital
Economy Act and the Postal Services Act.
OFCOMS Regulatory Principles:
• OFCOM will regulate with a clearly articulated and publicly reviewed
annual plan, with stated policy objectives.
• Will intervene where there is a specific statutory duty to work towards
public policy goals which markets alone cannot achieve.
• OFCOM research markets constantly and will aim to remain at the
forefront of technological understanding.
9. WATERSHEDS
Watershed is the point in time when adult content is broadcasted. The
watershed divides the day into the overnight period where family-
orientated programming suitable for children may be aired and where
programming aimed at or more suitable for a more adult audience is
permitted, though not required. Examples of adult content include
graphic violence, horror, strong language, nudity, sexual intercourse,
gambling and drug use. According to OFCOM, the watershed on free-to-
air television in the UK is between 21:00 and 05:30, while premium or
pay-per-view services allow to start the watershed at 20:00.
